The evaluation of the State Bank of India can be divided into four periods. Such classification is given below:
Before 1921, there were three Presidency Banks of Bombay, Calcutta and Madras. In 1921, by the amalgamation of these three banks the Imperial Bank was established. It was governed by the Imperial Bank of India Act of 1920. The Imperial Bank was mainly a commercial bank owned by private shareholders.
But it was simultaneously performing some of the functions of Central Bank such as the banker to the government, bankers’ bank and national clearing house. But it was not given the powers to issue notes or to engage in foreign business.
The Imperial Bank was functioning on this line till 1934 when a separate central bank i.e., RBI was established. Then the Imperial Bank of India Act was amended by the Imperial Bank (Amendment) Act of 1934.
ADVERTISEMENTS:
Besides its regular functions, the Imperial Bank acted as the agent of the Reserve Bank of India in all places where the later had no branches of its own. Besides enjoying great prestige on that account, it was coming into possession of large sums of Government Funds, on which no interest had to be paid.